If the government decreases the income tax rate, then:
A. aggregate supply curve with shift to the right.
B. aggregate demand will shift left.
C. aggregate demand will shift right.
D. GDP will decrease.
Answer: C
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In 2015, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?
A) For these banks, the loans increased required reserves. B) For these banks, the loans were liabilities instead of assets. C) These banks were receiving negative nominal interest rates on these loans. D) All of the above are correct.
If Japan imposes a tariff on shoes from Argentina, then
a. the price of Argentinean shoes sold in Japan will fall b. the quantity of Argentinean shoes sold in Japan will rise c. Japanese shoe producers will benefit d. Japanese consumers will benefit from lower prices for Japanese shoes e. Japanese consumers will benefit from lower prices for Argentinean shoes